REMARKS 


OF 


JOHN  W.  GARRETT 


PRESIDENT, 


AIADE  ON  APRIL  14th,  1869, 


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BALTIMORE  AKO  OHIO  R.  R.  CO. 


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BALTIMORE: 

THE  SUN  BOOK  AND  JOB  PRINTING  OFFICE. 


1869. 


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JOHN  W.  GARRETT 


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REMARKS  OF  JOHN  W.  GARRETT, 

PRESIDENT, 

Made  on  the  IJfth  of  1869,  at  the  regular 

i^o  Monthly  Meeting  of  the  Board  of  JDireetors  of 
the  Baltimore  and  Ohio  Railroad  Company, 

\ 

' 


The  Resolutions  proposed  by  the  Committee  of  Finance  for 
the  declaration  of  the  usual  semi-annual  dividends  being  before 
the  Board,  the  President  remarked  : 

I > 

THE  WORKS  PROSECUTED  BY  THE  COMPANY. 
Gentlemen  : 

Before  taking  the  vote  upon  these  resolutions  a statement, 
in  reference  to  the  general  financial  condition  of  the  company 
and  the  progress  of  its  works  may  he  interesting.  The  Board 
is  aware  that  the  expenditures  on  the  various  works  which  the 
company  is  prosecuting  are  very  heavy.  Upon  the  Metro- 
, politan  branch  large  forces  are  engaged  and  much  work  is 
being  performed.  The  road  from  Winchester  to  Strasburg  is 
, under  contract,  and  work  upon  that  entire  line  is  also  being 
vigorously  prosecuted. 

THE  OHIO  RIVER  BRIDGES. 

Large  preparations  have  continued  to  be  made  of  the  work 
I for  the  Ohio  river  bridges,  and  the  expenditures  for  these 
structures  now  exceed  $500,000.  As  the  Board  is  aware,  an 
I attack  was  made  during  the  last  session  of  Congress  upon  the 
{/  plan  for  the  channel  spans  of  these  bridges. 


4 


It  will  be  rememberel  that  the  bridges  at  Bellaire  and  at 
Parkersburg  are  being  constructed  under  an  act  of  Congress 
passed  in  1862,  under  which  the  Steubenville  bridge,  which  is 
used  by  the  Pennsylvania  road  and  its  connections,  was  also 
built.  That  bridge  remains,  and  has  not  been  practically 
attacked  by  those  who  assume  that  the  navigation  of  the  river 
will  be  interfered  with  by  the  bridges  of  the  Baltimore  and 
Ohio  Company.  Under  the  act  of  1862  the  water  way  between 
the  channel  piers  is  required  to  be  not  less  than  three  hundred 
feet.  The  Steubenville  bridge  was  so  imperfectly  constructed — 
the  piers  having  been  built  with  such  insecure  foundations — 
that,  in  order  to  maintain  them,  twenty  feet  of  rip-rapping  on 
each  side  of  each  pier  was  required,  so  that  the  water  way  has 
been  reduced  to  two  hundred  and  sixty  instead  of  being  three 
hundred  feet,  as  required  by  law. 

That  bridge  was  also  constructed  in  a bend  of  the  river, 
where  the  water  was  crooked,  and  where  there  were  serious 
difficulties  in  navigation,  irrespective  of  the  structure  itself. 
The  bridges  planned  by  the  Baltimore  and  Ohio  Company 
have  been  located  not  only  in  straight  water,  but  where,  for 
half  a mile  above  and  below  each  site,  there  is  a direct  current, 
thus  preventing  the  difficulties  that  arise  from  crooked  water, 
which  exists  wherever  the  river  curves.  The  Baltimore  and 
Ohio  Company  also,  instead  of  attempting  to  place  its  piers 
upon  the  bottom  of  the  river,  with  little  or  no  foundations,  has, 
at  great  cost — and  thus  far  under  great  difficulties,  arising 
principally  from  the  frequent  rises  of  the  river  during  the  last 
season,  which  destroyed  or  damaged  seriously  and  repeatedly 
its  coffer  dams — constructed  its  piers  with  an  average  depth  of 
foundation  of  eleven  feet,  thus  making  them  so  substantial 
that  when  constructed  the  superstructures  can  be  placed  upon 
the  piers  and  the  bridges  be  safe  without  a resort  to  rip- 
rapping. 

Under  these  circumstances  the  company  represented  to  the 
committees  of  the  House  of  Kepresentatives  and  the  Senate  that 
it  was  unjust  and  unreasonable  because  the  Pennsylvania  Kail- 
road  Company  had  violated  the  laio,  that  the  Baltimore  and 
Ohio  Company  should  not  be  permitted  to  carry  out  its  plans 


in  strict  c'^mplionce  with  the  laio.  The  company  alpo,  instead  of 
selecting  locations  where  the  water  was  shallow,  selected  pools, 
so  as  to  give  this  important  additional  protection  to  navigation. 
After  repeated  presentations  of  the  facts,  the  company  succeed- 
ed in  rescuing  its  rights  from  the  perils  which  were  threatened. 

In  this,  as  in  most  other  cases  involving  adverse  legislation, 
the  antagonistic  efforts  were  inspired  chiefly  by  rival  railway 
interests.  The  company  is  in  a position,  fortunately,  to  proceed 
with  these  great  works — works  which  are  of  vast  importance  to 
the  country  as  well  as  to  the  Baltimore  and  Ohio  Eailroad  and 
its  connections.  It  will  therefore  be  the  policy  of  the  company 
to  press  their  construction  vigorously  during  the  approaching 
season. 

KEVENUE. 

It  will  also  be  gratifying  to  learn  that,  notwithstanding  the 
complications  in  the  West  arising  from  efforts  to  cut  off  the  Bal- 
timore and  Ohio  road  from  some  of  its  natural  connections,  yet, 
during  the  past  month  of  March,  with  the  relations  that  the 
company  has  been  able  to  maintain,  and  .'Others  which  it  has 
improved,  whilst  the  revenue  of  the  main  stem  and  branches, 
in  March,  1868,  was  $718,591  68,  the  revenue  for  the  last  month 
viz:  March,  1869,  proved  to  he  $936,494  86 — thus  showing  an 
increase  for  that  month  of  $217,903  18.  This  exhibit  proves 
that  the  policy  of  the  Baltimore  and  Ohio  Company  has  not 
been  erroneous  in  declining  to  fasten  upon  itself,  at  prodigious 
cost,  during  a period  of  extraordinary  extravagance  and  excite- 
ment, unremunerative  western  connections. 

The  Pennsylvania  road  has  deemed  it  proper  to  make  an  agree- 
ment with  a single  association  of  financially  weak  roads  west  of 
Columbus,  by  which  it  agrees  to  pay  annually,  as  a minimum, 
the  sum  of  seven  per  cent,  on  $20,000,000  of  debt, viz:  $1,400,000 
a year  ; and  the  supposition  has  been  indulged  that  the  Balti- 
more and  Ohio  Company  might  be  cut  off  by  such  an  arrange- 
ment ; but  the  power  of  the  Baltimore  and  Ohio  road — having  so 
strengthened  and  enlarged  the  business  of  the  city  of  Baltimore — 
enables  it  to  command  such  a business  for  the  West  that  upon 
the  principle  of  reciprocity,  on  which  it  acts,  it  is  in  a position 
to  command  business  from  the  West  by  a sufficient  number  of 
satisfactory  and  desirable  routes. 


G 


THE  MARIETTA  AND  CINCINNATI  RAILROAD. 

In  consequence  of  the  embarrassments  of  the  Marietta  and 
Cincinnati  Company,  this  company  has  continued  to  assist  it 
largely.  The  completion  of  the  arching  of  the  twenty-three 
tunnels  on  the  Parkersburg  branch,  and  the  general  improve- 
ment of  the  condition  of  that  road,  combined  with  the  improved 
state  of  the  Marietta  and  Cincinnati  roadj  under  the  present  vig- 
orous administration  of  the  affairs  of  that  company,  will  enable 
the  Baltimore  and  Ohio  Company  to  do  that  which  has  been 
unprecedented  in  the  history  of  travel  betwixt  the  East  and 
West.  The  company  design  establishing  a line  between  Balti- 
more and  Cincinnati,  via  the  Parkersburg  branch,  which  will 
require  hut  twenty-three  and  a-half  hours  between  the  two 
cities.  This  arrangement  will  commence  with  our  spring 
schedules,  and  the  line  cannot  fail  to  command  a large  increase 
of  traffic. 

THE  PITTSBURG  AND  CONNELLSVILLE  RAILROAD. 

The  work  upon  the  Pittsburg  and  Connellsville  road  is  pro- 
gressing satisfactorily,  and  it  is  proposed  to  place,  at  an  early 
day,  all  the  remaining  sections  under  contract.  No  effort  will 
he  spared  to  open  this  invaluable  and  powerful  line  at  the 
earliest  practicable  period.  That  company  continues  to  dispose 
of  its  seven  per  cent,  first  mortgage  bonds  at  ninety  per  cent. 
It  is  hoped  that  capitalists  will  continue  to  invest  largely  in 
this  desirable  security. 

ISSUE  OF  PREFERRED  STOCK. 

To  meet  the  requirements  of  funds  for  the  important  works 
in  progress,  the  Baltimore  and  Ohio  Company  is  now  furnishing 
its  preferred  six  per  cent,  stock  at  par.  As  this  security  is  of 
the  very  highest  order,  is  perpetual  and  free  from  both  State 
and  municipal  taxes,  it  offers  a most  reliable  and  inviting 
investment. 

THE  WASHINGTON  COUNTY  RAILROAD. 

Among  the  works  which  the  company  has  prosecuted  to 
completion  is  the  Washington  County  Road.  It  is  proper  to 
state  that  whilst  this  Branch  was  undertaken  measurably,  by  this 


company,  in  view  of  the  disappointment  originally  of  our  fel- 
low-citizens of  that  portion  of  the  State,  which  arose  from  the 
final  location  of  the  Baltimore  and  Ohio  road,  yet  it  was  also 
hoped  by  its  friends  that  the  enterprise  might  prove  remunera- 
tive. The  results,  however,  have  not  been  satisfactory,  finan- 
cially. The  road  has  been  in  operation  from  December  1st, 
1867,  and  up  to  March  31, 1869 — sixteen  months — the  earnings 
from  passengers  amounted  to  but  $39,503  67,  and  from  tonnage 
to  $29,336  12,  making  an  aggregate  revenue  for  that  entire 
period  of  $68,839  79.  The  actual  working  expenses,  irre- 
spective of  construction,  during  these  sixteen  months,  were 
$75,225  03,  leaving  a deficit  of  $6,385  24.  This  deficit  exists  ' 
in  addition  to  the  expenditures  incident  to  the  completion  of 
the  road  during  the  same  period,  viz:  $52,503  69,  which  were 
charged  to  construction.  Besides  this  loss,  the  further  loss  of 
upwards  of  $70,000  has  been  sustained,  being  the  interest  for  that 
time  at  six  per  cent,  on  the  capital  expended  in  the  construction 
of  the  road.  Why  has  this  disappointment  arisen?  It  was,  of 
course,  originally  understood  that  the  Chesapeake  and  Ohio 
canal  and  the  Main  Stem  of  the  Baltimore  and  Ohio  road 
furnished  abundant  and  cheap  facilities  of  transportation 
for  a large  portion  of  Washington  county — that  the  Cum- 
berland Valley  road,  extending  also  to  Hagerstown,  was  an 
outlet  to  Baltimore,  through  the  Northern  Central  road,  and 
to  Philadelphia  and  New  York  by  the  Pennsylvania  road,  and 
that,  consequently,  severe  competition  would  occur  ; but  that 
^ competition  has  proven  greater  than  anticipated,  and  so  great 
have  been  the  facilities  for  transportation  for  the  relatively  ^ 
small  business  to  be  obtained,  that  it  has  been  demonstrated 
that  the  Baltimore  and  Ohio  Company  could  conveniently 
transport  in  one  week  all  the  business  that  it  has  been  in  its 
power  to  obtain  in  the  sixteen  months  elapsed  since  the  opening 
of  the  road. 

The  policy  of  the  Baltimore  and  Ohio  Company,  in  order  to 
I advance  the  interests,  and  benefit  the  farmers  and  merchants  of 
\ Washington  county,  and  to  command  a heavy  traffic,  was  to  re- 
duce the  charges  both  for  passengers  and  freight  very  largely, 

: and  yet,  even  with  the  great  reductions  made  on  the  rates 


8 


charged  by  the  Pennsylvania  road,  prior  to  the  opening  of 
this  line,  from  which  such  unremunerative  results  have  fol- 
lowed, the  company  has  found  it  impossible  to  obtain  more 
than  the  very  limited  business  stated. 

The  magnitude  of  these  reductions,  and  the  efforts  of  the 
company  to  secure  business  and  increase  the  trade  with  Balti- 
more, should  be  justly  estimated  when  attention  is  called  to 
the  facts,  that  the  charge  by  the  Pennsylvania  and  Northern 
Central  Roads,  for  passage  from  Hagerstown  to  Baltimorej 
prior  to  the  opening  of  the  Washington  County  Road,  was 
^4.60,  whilst  that  by  the  Washington  County  and  Baltimore 
and  Ohio  Roads  is  but  $3.50  ; and  that  whilst  before  the  com- 
petition of  the  Baltimore  and  Ohio  Company,  those  roads 
charged  sixty  cents  per  barrel  for  flour — the  Baltimore  and 
Ohio  Company  has  reduced  the  charge  to  thirty-flve  cents  per 
barrel. 

As  the  rates  have  been  so  reduced  that  heavy  losses  occur  in 
working  the  Washington  County  Road,  the  citizens  of  that 
County  should  appreciate  that  they  are  benefltted  constantly 
and  largely  by  the  enterprise  and  liberality  of  the  Baltimore 
and  Ohio  Company. 

The  results  stated  have  not  occurred  because  Washington 
county  is  not  a great  and  productive  region,  nor  because  there  is 
not  a considerable  business,  but  simply  because,  with  the  Chesa- 
peake and  Ohio  canal  and  two  powerful  railway  companies,  pre- 
pared for  a large  business,  a capacity  of  transportation  has  been 
established  immensely  beyond  any  existing  or  possible  require- 
ments for  the  traffic  of  that  region.  The  Baltimore  and  Ohio 
Company  has  the  satisfaction  of  having  met  the  wishes  of  that 
section  of  the  State.  Financially,  however,  it  is  proper  that  the 
true  relations  and  losses  connected  with  the  line  should  be  under- 
stood. Another  lesson  is  thus  furnished,  showing  that  the  true 
])olicy  in  building  railways  is  not  to  construct  parallel  lines  or  to 
furnish  additional  railways  to  points  whence  the  business  cannot 
possibly  be  commensurate  with  the  capital  and  facilities 
afforded. 


9 


DISTANT  CONNECTIONS, 

The  policy  generally  pursued  by  this  company  has  been  to 
strike  for  new  and  distant  regions  and  for  additional  sources 
of  business.  By  this  policy  great  regions  are  accommodated 
and  supplied  with  avenues  of  the  highest  utility  and  advan- 
tage, and  immense  amounts  of  traffic  necessarily  flow  through 
such  new  channels,  and  aid  enormously  in  building  up  the 
terminal  points,  and  thus  insure  a legitimate  and  natural 
increase  of  business,  which  causes  every  interest  connected  with 
a commercial  community  to  advance  and  prosper. 


THE  COAL  TRADE. 

The  company  has  not  hesitated  to  continue,  in  addition  to 
providing  a double-tracked  line  to  the  coal  regions,  to  expend 
large  sums  in  furnishing  the  additional  plant  required  for 
the  advancement  of  that  highly  important  interest.  It  was 
decided  some  time  since  to  build  an  addition  to  the  coal 
equipment  of  four  hundred  hoppers  of  eleven  tons  capacity  each. 
Of  these  a large  proportion  has  already  been  built  and  is  in 
service.  Fifteen  locomotives  have  also  been  recently  added  to 
the  equipment.  By  these  means  and  facilities  the  coal  trade 
has  already  swollen  to  a volume  which  exceeds  4,000  tons  per 
day. 

This  quantity  is  now  regularly  brought  to  our  wharves, 
and  the  design  of  the  company,  if  its  ability  to  so  act  be  not 
checked  by  untoward  circumstances,  is  to  continue  to  do  all 
that  is  possible  to  develop  this  important  trade.  It  will  be  re- 
membered that  the  company,  in  the  early  part  of  1868,  reduced 
largely  the  tariff  on  coal.  It  will  also  be  remembered  that  the 
demand  became  enormous — far  beyond  the  expectations  of  the 
bituminous  coal-carrying  interests.  As  the  season  advanced, 
it  became  clear  that  the  company  could  readily  have  obtained 
for  its  then  full  capacity  of  transportation  an  increase  of  one 
dollar  per  ton  on  the  charge  made ; but  in  the  pursuit  of  the 
wise  policy  upon  which  you  determined,  no  advance  was  made. 


10 


and  this  coal  was  supplied  continuously  at  the  lowest  possible 
cost;  during  the  winter,  also,  no  change  in  the  tariff  was  made. 
The  business  was  unprecedentedly  large,  and  at  the  opening 
of  navigation  the  demand  increased  beyond  any  previous 
experience. 

EFFECT  OF  THE  LOW  TABIFF  ON  COAL  ON  THE  MANUFACTURING 
INTERESTS  OF  BALTIMORE. 

Another  interesting  and  gratifying  result  to  our  community 
is  shown  in  connection  with  this  low  tariff.  The  increase  in 
the  consumption  of  coal  by  the  manufacturing  interests  of  Balti- 
more is  very  marked.  In  an  important  instance  a great  manu- 
facturing interest — the  Baltimore  Copper  Smelting  Company — 
is  being  sustained  chiefly,  and  succeeds,  because,  as  against 
Northern  competition,  it  is  supplied  with  cheap  coal,  controlled 
by  the  low  rates  of  tariff  of  the  Baltimore  and  Ohio  Company. 
The  manufacturing  interests  of  Baltimore  are  constantly  in- 
creasing, and  chiefly  because  of  the  great  comparative  advan- 
tages resulting  from  an  abundant  supply  of  this  fuel  at  low 
prices. 

STEAMSHIP  ENTERPRISES. 

The  progress  of  our  steamship  enterprises  has  continued 
very  satisfactory.  The  North  German  Lloyd  have  found  that 
such  are  the  comparative  economies  and  advantages  of  this 
port — especially  in  the  cheapness  of  coal — that,  without  de- 
manding aid  from  Baltimore  or  American  interests,  beyond 
what  might  be  agreeable  to  those  interests  to  contribute,  that 
company  has  already  doubled  the  number  of  ships  upon  the 
line.  At  this  moment  not  only  is  a full  cargo  awaiting  the 
next  steamer,  but  we  have  the  satisfaction  to  state  that  suffi- 
cient cargo  is  offered  to  load  at  once  two  instead  of  one  of  the 
steamers.  It  is  therefore  reasonable  to  anticipate  that  this  line, 
which  was  inaugurated  wdth  two  ships,  and  which  in  one  year 
increased  to  four,  will,  in  less  than  two  years,  have  not  less 
than  eight  first-class  steamers  plying  between  Baltimore  and 
Bremen.  The  economy  in  the  cost  of  coal  of  $2.50  per  ton, 


11 


as  compared  with  New  York,  aids  largely  in  the  success  of  this 
enterprise. 

In  this  connection  it  will  be  interesting  to  state  that,  whilst 
the  company  has  long  been  anxious  to  establish  a line  of  first- 
class  steamers  between  Liverpool  and  Baltimore,  of  larger  ca- 
pacity than  of  those  which  have  heretofore  been  placed  upon  that 
route,  yet,  in  consequence  of  the  depressed  condition  of  the 
traffic  beteewn  Liverpool  and  New  York,  and  the  unprofitable 
results  of  the  lines  between  those  ports,  no  satisfactory  arrange- 
ment could  be  heretofore  effected.  Within  the  past  week,  how- 
ever, negotiations  have  been  opened  with  an  important  and  in- 
fluential foreign  house  which  indicate  that  it  is  prepared  to 
join  this  company,  probably  in  the  course  of  a few  months,  in 
establishing  a line  of  the  character  and  capacity  desired. 

LOCUST  POINT  ROUTE. 

Much  objection  has  been  made  by  passengers  between  the  Na- 
tional Capital  and  Philadelphia  and  New  York  to  the  delay  in 
passing  through  the  streets  of  Baltimore  by  horse  power,  as 
well  as  to  the  slow  speed  required  in  approaching  Camden  and 
President-street  stations.  The  increasing  business  of  the  city 
adds  constantly  to  the  use  of  Pratt  street,  and  causes  serious 
difficulties  in  transferring  cars  in  the  passenger  and  freight  ser- 
vice between  the  Philadelphia  and  Baltimore  and  Ohio  stations. 
These  embarrassments  in  transportation  produce  also  much 
apprehension,  although,  with  the  great  care  exercised,  but  few 
accidents  have  occurred.  Under  these  circumstances  the  com- 
pany has  sought  most  carefully  for  a plan  which  would  prove 
permanently  for  the  best  interests  of  the  community,  and  ac- 
complish, in  the  most  convenient  manner,  the  rapid  transfer 
demanded  by  the  public  interests.  Our  engineers  and  officers, 
in  conjunction  with  those  of  the  Philadelphia,  Wilmington  and 
Baltimore  Company,  have  unanimously  decided  that  the  true 
route  will  be  upon  the  peninsula  of  Locust  Point,  where  the 
population  is  relatively  limited,  and  where  the  construction  and 
facilities  of  the  railroad  will  advance  the  value  of  property  and 


12 


promote  the  convenience  of  the  people.  The  company,  for  the 
reasons  stated,  has  secured  the  property  that  will  he  requisite 
to  accomplish  the  desired  object.  It  will  become  necessary, 
in  carrying  out  the  improvement,  to  open  a street  and  obtain 
authority  for  its  use. 

So  far  as  has  been  learned,  the  line  proposed  meets  very 
generally  with  the  approval  of  those  interested.  The  Baltimore 
and  Ohio  Railroad  Company  can  thus  construct  a very  direct 
route  to  a point  east  of  the  European  steamship  piers.  Between 
this  site  and  Canton  the  passenger  trains  from  and  to  Wash- 
ington can  be  readily  and  rapidly  transferred  in  barges  by  the 
use  of  steamtugs,  as  has  been  so  successfully  done  for  two  years 
past  by  this  company  over  the  Ohio  river  at  Bellaire  and  Par- 
kersburg. This  system  will  solve  a problem  of  very  great 
interest  to  the  citizens  of  Baltimore.  It  will  also  enable  the 
company  to  transfer  its  freights  with  economy  and  dispatch. 
This  line  can  also  be  used  for  the  transfer  of  freight  to 
and  from  the  Northern  Central  Road,  and  thus  to  an  important 
extent  relieve  the  track  upon  Howard  street.  As  it  is 
clear  that  it  is  the  interest  of  the  Northern  Central  Company 
to  build  a road  to  tide  for  its  coal  traffic,  it  is  evident  that  when 
such  a line  be  built  the  transfer  suggested  can  be  advantageously 
made.  The  New  Jersey  and  Camden  and  Amboy  companies 
also  unite  in  the  desire  to  have  this  improvement  in  the  line 
effected. 

As  the  board  is  unanimous  in  its  judgment  regarding  the 
importance  and  desirableness  of  the  improvement,  the  chair 
suggests  the  appointment  of  a special  committee,  to  be  com- 
posed of  the  city  directors,  to  present  the  subject  for  the  con- 
sideration and  action  of  the  City  Councils.  The  proper  notice 
required  by  law  in  such  cases  has  been  duly  given,  and  the 
application  can,  therefore,  be  at  once  considered.  If  the  requi- 
site authority  be  promptly  granted,  it  is  contemplated  that  the 
line  will  be  placed  in  operation  during  the  coming  season. 

[In  accordance  with  the  suggestion  of  the  chair,  a resolution 
was  unanimously  adopted  appointing  the  city  directors  a special 
committee  to  present  the  subject  to  the  councils,] 


13 


SOUTHERN  CONNECTIONS.— THE  VIRGINIA  VALLEY 
AND  THE  LYNCHBURG  & DANVILLE  RAILWAYS. 

After  the  transaction  of  other  general  business,  the  President 
referred  as  follows  to  additional  Southern  connections  : 

There  are  two  proposed  railway  improvements  of  vital  im- 
portance to  this  community,  the  facts  in  relation  to  which  will 
be  presented  at  an  early  day  in  a manner  that  will  attract  great 
public  attention.  The  aid  of  the  Baltimore  and  Ohio  Company 
to  the  Winchester  and  Strasburg  road  will  effect  the  opening  of 
the  line  to  Harrisonburg,  101  miles  from  the  main  stem,  at 
Harper’s  Ferry,  during  the  next  autumn.  There  will  then 
he  a gap  of  hut  113  miles  from  Harrisonburg  to  Salem — 
the  construction  of  which  will  not  only  develop  the  business  of 
the  magnificent  Valley  of  Virginia,  but  also  open,  under  the  most 
favorable  auspices  and  influences,  a great  line  to  New  Orleans, 
which  will  largely  command  the  traffic  of  the  vast  intermediate 
territory. 

Another  gap,  of  but  sixty  miles,  exists  between  Lynchburg 
and  Danville,  the  filling  of  which  will  connect  the  Orange  and 
Alexandria  road  with  a highly  important  system  of  Southern 
railways,  by  which  an  enormous  business  will  necessarily 
be  directed  to  Baltimore  which  now  passes  to  the  coast. 

The  leading  citizens  in  those  sections  are  extremely  anxious  to 
have  these  roads  constructed.  They  want,  in  view  of  the  advan- 
tages which  must  result  to  their  regions,  enlarged  commercial 
intercourse  with  Baltimore.  They  are  willing  to  contribute 
largely  for  the  works  themselves.  The  counties  on  the  Valley 
line  propose  to  subscribe  $1,200,000.  That  Company  proposes 
to  ask  the  city  of  Baltimore  to  subscribe  a million  to  its  stock. 

The  Lynchburg  and  Danville  interests  propose  to  supply  all  the 
capital  that  will  be  requisite  but  $500,000.  This  sum  they  wish 
to  obtain  from  the  city  of  Baltimore.  Under  these  circum- 
stances large  delegations  of  the  most  eminent  citizens  in  Vir- 
ginia— Messrs.  Harman,  Barbour,  Baldwin,  Pendleton,  Sheffey, 
General  R.  E.  Lee,  and  others  of  equal  prominence  and 
influence — it  is  expected  will  visit  Baltimore  about  the 
21st  of  this  month  to  confer  with  its  authorities  and  citizens. 


14 


It  will  be  seen  that,  as  a mere  railroad  question,  the  Bal- 
timore and  Ohio  Company  has  but  little  interest  in  these 
extensions,  whilst  incalculable  benefits  would  result  from 
their  construction  to  the  business  interests  of  Baltimore.  As 
this  company  is  now  engaged  in  enterprises  for  the  prosecu- 
tion of  which  all  its  resources  are  required,  those  connected 
with  it  can  only  aid  as  citizens,  and  co-operate  to  secure  the 
requisite  capital.  It  has  been  heretofore  found  impossible  to 
obtain  the  large  sums  necessary  for  such  works  from  individuals. 
Therefore,  the  only  practicable  plan  appears  to  he  for  the  city 
to  render  the  necessary  assistance.  It  is  the  judgment  of 
many  who  have  carefully  considered  the  subject  that  if  the  city 
of  Baltimore  can,  by  subscribing  ^1,000,000  to  the  Valley  line 
and  $500,000  to  the  Lynchburg  and  Danville  line,  secure  their 
construction,  and  thus  open  these  direct  and  first-class  ave- 
nues to  Baltimore,  this  community  will  absolutely  gain  in 
advantage  and  net  profits  on  the  vast  business  that  will  be 
thus  commanded,  not  less  than  the  aggregate  amount  ($1,500,- 
000). in  each  and  every  year  after  their  completion.  In  that 
judgment  the  chair  fully  coincides.  It  is  stated  that  very 
large  delegations  will  visit  Baltimore.  If,  when  these  gentle- 
men arrive,  full  co-operation  be  extended,  and  tbe  facts  and 
interests  connected  with  these  great  subjects  be  presented  and 
understood  in  the  community  and  in  the  city  councils,  and  aid 
be  granted,  it  will  undoubtedly  lead  to  results  in  the  commer- 
cial progress  of  Baltimore  as  important  and  valuable,  in  con- 
nection with  the  Southern  trade,  as  the  developments  and 
extensions  of  the  Baltimore  and  Ohio  road  are  bringing  about 
in  the  trade  of  the  West,  the  Northwest  and  the  Southwest., 
The  chair  feels  that  the  importance  and  magnitude  of  the 
interests  involved  in  these  enterprises  cannot  be  too  earnestly 
urged. 

[Subsequent  to  the*remarks  of  the  President  regarding  the 
financial  condition  of  the  Company,  the  report  of  the  Commit- 
tee of  Finance  was  adopted.] 


